On the State Regulation, Control and Supervision of the Financial Market and Financial Organizations

The Law of the Republic of Kazakhstan dated 4 July, 2003 No. 474

      Footnote. The title is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Note of RCLI!
      From 01.01.2013 the words “unified register”, “of unified register”, “by unified register” respectively consider as the words “register”, “of register”, “by register” in accordance with the Law of the Republic of Kazakhstan dated 28.12.2011No. 524-IV.

      This Law regulates the public relations, related with carrying out of the state regulation, control and supervision of financial market and financial organizations, and directs to increasing of stability of financial system of the Republic of Kazakhstan and creation conditions on prevention of violation of rights and legal interests of consumers of financial services.
      Footnote. Preamble is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No.30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

      The following basic concepts shall be used in this Law:
      1) consumer of financial services – individual or legal entity, using services of financial organization, as well as investing their funds in the financial instruments;
      2) professional activity on the financial market - entrepreneurial activity on provision of financial services;
      3) an authorized body – National Bank of the Republic Kazakhstan;
      4) financial organization – legal entity, carrying out entrepreneurial activity on provision of financial services, as well as legal entity, specified in paragraph 8 of Article 61-4 of the Law of the Republic of Kazakhstan “On banks and banking activity in the Republic of Kazakhstan”;
      5) financial market – a set of relations, related with rendering and consumption of financial services, as well as issuance and circulation of financial instruments;
      6) financial services – activity of participants of insurance market, security markets, voluntary pension savings fund, banking activity, activity of organizations on conducting of separate types of banking operations, carrying out on the basis of licenses, received in accordance with the legislation of the Republic of Kazakhstan, as well as activity of unified pension savings fund, central securities depository, unified registrar and mutual insurance associations, not subjected to licensing;
      7) financial product – this service, developed by financial organization to offer financial services to the consumers within the limits of carrying out of professional activity on the financial market.
      Footnote. Article 1 as amended by the Laws of the Republic of Kazakhstan dated 7 July, 2004 No. 577; dated 5 July, 2006 No.164 (the order of enforcement see Article 2); dated 19 February, 2007 No. 230 (the order of enforcement see Article 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication); dated 27.04.2015 No. 311-V (shall be enforced from 01.01.2015).

Article 2. The legislation of the Republic of Kazakhstan on
the state regulation, control and supervision of financial
market and financial organizations

      1. The legislation of the Republic of Kazakhstan on the state regulation, control and supervision of financial market and financial organizations shall be based on the Constitution of the Republic of Kazakhstan, shall consist of this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. If by the international treaty, ratified by the Republic of Kazakhstan, made other rules than those that contained in this Law, the rules of the international treaty shall be applied.
      Footnote. Article 2 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 3. Purposes, principles and tasks of the state
regulation, control and supervision of financial market
and financial organizations

      Footnote. The title of Article 3 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      1. Purposes of the state regulation, control and supervision of financial market and financial organizations shall be:
      1) ensuring of financial stability of financial market and financial organizations and maintain confidence to the financial system as a whole;
      2) Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication);
      3) creation of competitive conditions for activity of financial organizations, directed to maintain fair competition on the financial market.
      2. Principles of the state regulation, control and supervision of financial market and financial organizations shall be:
      1) efficient use of resources and instruments of regulation;
      2) transparency of activity of financial organizations and financial supervision;
      3) responsibility of financial organizations.
      3. Tasks of the state regulation, control and supervision of financial market and financial organizations shall be:
      1) establishment of standards of activity of financial organizations, creation of incentives for improvement of corporate governance of financial organizations;
      2) monitoring of financial market and financial organizations for the purposes of preservation of stability of financial system;
      3) concentration of resources of supervision on the fields of financial market, most subjected to risk, in order to maintain financial stability;
      4) ensuring of appropriate level of protection of interests of consumers of financial services, as well as completeness and availability of information for consumers on activity of financial organizations and rendering by them financial services.
      Footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 4. Prohibition on unauthorized activity on the
financial market

      1. Carrying out of professional activity on the financial market by persons, not having the appropriate license, issued in accordance with the legislation of the Republic of Kazakhstan shall not be prohibited.
      2. Transactions on rendering of financial services, committed without appropriate license of the authorized body shall be invalid.

Article 5. Prudential regulation and other standards and
limits, compulsory for observance

      Prudential regulations shall be economic constraints, established by the authorized body for financial organizations for the purposes of ensuring of their financial stability and protection of interests of consumers of financial services.
      In the cases, provided by the legislative acts of the Republic of Kazakhstan, an authorized body shall have a right to establish the prudential regulations and other standards and limits, compulsory for observance on the consolidated basis.

Article 6. Antimonopoly regulation on the financial market

      (Is excluded by the Law of the republic of Kazakhstan dated 7 July, 2006 No. 174).

Chapter 2. The status, tasks, functions and powers of
the authorized body

Article 7. The status of the authorized body

      Footnote. Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 8. Tasks of the authorized body

      1. The tasks of the authorized body shall be:
      1) implementation of measures on prevention of violations of rights and legal interests of consumers of financial services;
      2) creation of equal conditions for functioning of the relevant types of financial organizations on the principles of fair competition;
      3) increasing the level of standards and methods of regulation, control and supervision of activity of financial organizations, using the measures on ensuring of timely and full implementation of their accepted obligations.
      2. An authorized body shall ensure implementation of other tasks, provided by this Law and other legislative acts of the Republic of Kazakhstan.
      Footnote. Article 8 as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 9. Functions and powers of the authorized body

      Footnote. The title of Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

      1. For the purposes of the state regulation, control and supervision of activity of financial organizations, the authorized body shall:
      1) issue and revoke permission to open (creation) of financial organizations, their voluntary reorganization and liquidation, as well as voluntary reorganization of bank and insurance holding companies, as well as determine the procedure of issuance of specified permissions and consents in the cases, provided by the legislative acts of the Republic of Kazakhstan;
      2) give consent or refuse in giving the consent for election (assignment) of persons to positions of executive employees of financial organizations, bank holding companies, insurance holding companies, as well as determine procedure of giving of specified consent or refuse in giving it in the cases, provided by the legislative acts of the Republic of Kazakhstan;
      3) establish procedure of issuance, suspension and deprivation of licenses for carrying out of professional activity on the financial market in the cases, provided by the legislation of the Republic of Kazakhstan on permissions and notifications, issue, suspend the action and deprive the specified licenses;
      4) issue the regulatory legal acts, compulsory for execution by the financial organizations, consumers of financial services, other individuals and legal entities on the territory of the Republic of Kazakhstan;
      5) approve prudential regulations and other standards and limits, compulsory for observance for financial organizations, as well as on the consolidated basis;
      5-1) approve internal procedures for determination of carrying out of requirements of the authorized body by the banks, bank holding companies and banking conglomerates in recognition of risks accepted by them;
      6) establish the list, forms, terms and procedure of presentation of accounts (except for the financial accountability) by the financial organizations and their affiliated persons;
      7) Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication);
      7-1) direct their representative for participation in general meeting of stockholders of financial organizations, bank and insurance holding companies;
      8) verify activity of financial organizations and their affiliated persons in the cases and within the limits, provided by the legislative acts of the republic of Kazakhstan, as well as with involvement of audit organization;
      8-1) verify the legal entities, applied to the authorized body with application on issuance of license on carrying out of activity on the financial market, in the cases and within the limits, provided by the Laws of the Republic of Kazakhstan;
      9) determine procedure of application and apply to the financial organizations, major participants of financial organizations, bank and insurance holding companies, participants of banking conglomerates and insurance groups, limited enforcement actions, enforcement measures and sanctions, provided by the Laws of the Republic of Kazakhstan, as well as for the purposes of decrease of risk;
      9-1) apply methods of risk assessment, arising in the activity of banks, bank holding companies and banking conglomerates;
      10) adopt decision on compulsory redemption of shares of financial organizations by agreement with the Government of the Republic of Kazakhstan in the cases, provided by the legislative acts of the Republic of Kazakhstan;
      11) carry out control of activity of liquidation commissions of financial organization in the cases, provided by the legislative acts of the Republic of Kazakhstan;
      12) publish details in the mass media on financial organizations (except for the details, consisting official, commercial, banking or other legally protected secret), as well as information on measures, accepted to them;
      12-1) establish the list (types) of financial products, requiring the consent of the authorized body, to offer by the financial organizations to the consumers of financial services;
      12-2) give the consent to the financial organizations to offer by them of financial products to the consumers of financial services, as well as determine procedure of specified consent in the cases, provided by the legislative acts of the Republic of Kazakhstan.
      2. The authorized body shall have a right to conduct verifications of financial organizations and their affiliated persons, as well as with involvement of audit organizations, for the purposes of:
      1) determination of financial status of financial organizations and their affiliated persons;
      2) determination of compliance with the legislation of the Republic of Kazakhstan of structure of management and procedure of adoption of decisions by the financial organizations and their affiliated persons;
      3) determination of affiliated persons of financial organizations;
      4) revelation and prevention of violations of rights of consumers of financial services;
      5) revelation and prevention of unauthorized activity on provision of financial services or issuance of financial instruments.
      2-1. The authorized body shall carry out control of execution of the legislation of the Republic of Kazakhstan by the financial organizations and National operator of post on countering to the legitimization (laundering) of incomes, received by illegal means, and financing of terrorism in a part of recording, storing and providing information on transactions with money and (or) other property, subjected to financial monitoring, adequate verification of clients (their representatives) and beneficial owners, suspension and refusal to conduct transactions, subjected to financial monitoring, protection of documents, received in the process of their activity, as well as organization and implementation of internal control in accordance with the legislation of the Republic of Kazakhstan.
      2-2. The authorized body shall have a right to have their representative in the banks, banking holding companies, investment portfolio managers, insurance organizations (insurance holding companies (hereinafter – representative) for the purposes of carrying out of supervisory functions.
      3. Besides the functions and powers, provided by paragraphs 1 and 2 of this Article, the authorized body shall carry out other powers on the state regulation, control and supervision of financial organizations, bank and insurance holding companies, banking conglomerates and insurance groups in recognition of features, provided by Article 10-13 of this Law, as well as other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      4. The authorized body shall not have a right to intervene in the activity of financial organizations, except for the cases, provided by the legislative acts of the Republic of Kazakhstan.
      Footnote. Article 9 as amended by the Laws of the Republic of Kazakhstan dated 11.06.2004 No. 562; dated 23.12.2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107); dated 31.01.2006 No. 125; dated 05.05.2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No.139); dated 19.02.2007 No. 230 (the order of enforcement see Article 2); dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010); dated 19.03.2010 No. 258-IV; dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 28.12.2011 No. 524-IV(shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication); dated 10.06.2014 No. 206-V (shall be enforced upon expiry of six months after its first official publication).

Article 9-1. The task, functions, rights and obligations
of representative

      1. The authorized body shall direct their representative to the banks, bank holding companies, investment portfolio managers, insurance (reinsurance) organizations, insurance holding, which is appointed by the authorized body from the number of employees for the purposes of carrying out of control and supervisory functions.
      The number of representatives from one of the financial organizations, specified in paragraph 1 of this Article shall be determined by the authorized body.
      2. Representatives of their activity shall be governed by this Law, regulatory legal acts of the authorized body and other legislation of the Republic of Kazakhstan.
      3. The authorized body shall have a right to replace their representative in the bank, managing the investment portfolio, insurance (reinsurance) organization) in any time.
      4. The basic task of representative shall be ensuring of carrying out of control and supervisory functions of the authorized body.
      5. Representative for the purposes of implementation of task, imposed on him (her) shall carry out the following functions:
      1) analyze financial status of bank, managing the investment portfolio, insurance (reinsurance organization;
      2) control observance of regulatory legal acts, requests, instructions, requirements of the authorized body;
      3) make suggestions on conducting of verification in the bank, managing the investment portfolio, insurance (reinsurance) organization;
      4) present as an observer in the meetings of the board, board of directors, permanently or temporarily commissions (committees, working groups) of bank, managing the investment portfolio, insurance (reinsurance) organization (hereinafter – bodies of bank, managing the investment portfolio, insurance (reinsurance) organization);
      5) present at the general meeting of shareholders of bank, managing the investment portfolio, insurance (reinsurance) organization as observer without the voting right and expression of opinion on issues on the agenda of general meeting of shareholders.
      6. Representative shall have a right to:
      1) request details and documents in oral and written form, as well as financial accountability and materials of meetings (including held via web-conferencing) of bodies of bank, managing the investment portfolio, insurance (reinsurance) organization from the financial organizations, specified in paragraph 1 of this Article and (or) their civil servants, for the purposes of execution of functions, imposed on it;
      2) have access to automated systems and data basis without possibility of data correction (in view mode).
      7. Representative shall be obliged to:
      1) inform the authorized body on nonpresentation or untimely presentation of required by them details and documents, facts of interfering with execution of functions by the representative of the authorized body, bribery, threat or rendering of other illegal influence on it from the part of the specified financial organizations, by the financial organizations, specified in paragraph 1 of this Article;
      2) execute other functions under the instruction of the authorized body on issues, specified in decision of the authorized body on direction of its representative to the bank, insurance (reinsurance) organization, as well as managing the investment portfolio.
      8. Bank, investment portfolio manager, insurance (reinsurance) organization, in which the representative is directed shall be obliged to:
      1) render assistance to the representative in execution of its functions;
      2) make possible of full and timely provision of information to the representative by the civil servants and employees of financial organizations, specified in paragraph 1 of this Article, and access to all resources of information;
      3) present all the necessary details and documents on the day of receipt of request from the representative or in terms, specified in the request and agreed with them;
      4) provide access to information, concerning to their activity, as well as to the automated systems and data basis without possibility of data correction (in view mode);
      5) provide the representative with copies of documents, necessary for execution of functions, imposed on it.
      9. Representative shall bear responsibility of disclosure of details, received in the course of carrying out by them of control and supervisory functions, consisting official, commercial, banking secrecy, secret of pension savings, insurance and other legally protected secrecy, in accordance with the Laws of the Republic of Kazakhstan, as well as and after termination of work in the authorized body during three years.
      During one year after termination of work in the authorized body, the representative may not accept for employment to the bank, investment portfolio managers, insurance (reinsurance) organization, in which he (she) was a representative.
      Representative shall not bear responsibility for the results and decisions, adopting (adopted) in the course of meetings of bodies of bank, managing the investment portfolio, insurance (reinsurance) organization.
      10. Requirements of paragraph 2-9 of this Article shall be distributed on the representative of the authorized body in the bank and insurance holding companies.
      Footnote. The Law is supplemented by Article 9-1 in accordance with the Law of the republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2); is in the wording of the Law of the Republic of Kazakhstan dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 10. Features of the state regulation, control and
supervision of banking activity

      Footnote. The title of Article 10 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

      For the purposes of carrying out of the state regulation, control and supervision of banking activity, the authorized body shall:
      1) determine procedure of giving and refuse in giving the consent for acquisition of the status of major participant of bank and bank holding company by the individual and legal entities, permission for creation and acquisition of branch organization by banks and bank holding companies, as well as permission for acquisition of significant participant in the capital of legal entities by the banks and bank holding companies, issue or refuse in issuance of specified consent and permissions;
      2) establish minimum dimensions of owned capital of banks;
      3) establish requirements on formation of reserve capital of banks;
      4) approve prudential regulations and other standards and limits, compulsory for observance for banking conglomerates;
      5) (Is excluded - dated 19 February, 2007 No. 230)
      6) establish procedure of classification of assets and conditional obligations and creation provisions against them. Procedure of allocation of assets and conditional obligations to the category of doubtful and loss shall be determined by agreement with the state body, ensuring tax control of fulfilment of tax obligations before the state;
      7) maintain a register of banks;
      8) determine procedure of application and adopt decision on application of enforcement actions, provided by the legislative acts of the Republic of Kazakhstan to the affiliated persons;
      9) adopt decision on preservation of bank and appoint temporary administration (temporary manager of bank) in the cases, established by the banking legislation of the Republic of Kazakhstan;
      9-1) adopt decision on creation and termination of activity of stabilization of bank in the cases, provided by the Law of the Republic of Kazakhstan;
      10) adopt decision on termination of license on conducting of all or separate operations, provided by the banking legislation of the Republic of Kazakhstan and appoint the interim administration (interim administrator) in the cases, established by the banking legislation of the Republic of Kazakhstan;
      11) carry out other functions in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 23.12.2005 No. 107 (the order of enforcement see Article 2 of the Law No. 107); dated 05.05.2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139); dated 19.02.2007 No. 230 (the order of enforcement see Article 2); dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009); dated 15.07.2010 No. 337-IV (the order of enforcement see Article 2); dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 10-1. The task, functions, rights and obligations of
the representative of authorized body in the banks

      Footnote. Article 10-1 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (the order of enforcement see Article 2).

Article 11. Features of the state regulation, control and
supervision of insurance activity

      Footnote. The title of Article 11 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      For the purposes of carrying out of the state regulation, control and supervision of insurance activity, the authorized body shall:
      1) determine procedure of giving or refuse in giving the consent for acquisition of the status of major participant of insurance (reinsurance) organization and insurance holding companies by the individual and legal entities, permission for creation and acquisition of branch organization by insurance (reinsurance) organization and insurance holding companies, as well as permission for acquisition of significant participant in the capital of legal entities by insurance (reinsurance) organization and insurance holding companies, issue of specified consent and permission or refuse in its issuance;
      2) establish requirements on formation of insurance reserves by the insurance (reinsurance) organizations;
      3) establish requirements to the calculation methods of insurance reserve of insurance (reinsurance) organizations;
      4) determine procedure of placement and investment of assets by the insurance (reinsurance) organizations;
      5) establish requirements on form and content of insurance policies;
      6) determine procedure and conditions of increasing the amount of regular insurance payments during the term of the annuity contracts on the basis of actuarial conclusion and requirements to its content;
      7) determine procedure and conditions of issuance of loans to its insured persons by the insurance organization, carrying out activity on endowment insurance;
      8) determine procedure of accounting of insurance (reinsurance) organization of agreements of insurance and reinsurance (insurance policies), as well as executed by the insurance (reinsurance) organization with violation of established (by the agreements or the legislation of the Republic of Kazakhstan) terms;
      9) maintain register of insurance (reinsurance) organizations, insurance brokers, actuaries;
      10) adopt decision on termination of license on the right of carrying out of insurance activity and appoint the interim administration (interim administrator) in the cases, established by the legislation of the Republic of Kazakhstan on insurance and insurance activity;
      11) determine procedure of compulsory collective guarantee of insurance payments on the types of compulsory insurance;
      12) carry out other functions in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 11 as amended by the Laws of the Republic of Kazakhstan dated 05.05.2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139); dated 19.02.2007 No. 230 (the order of enforcement see Article 2); dated 15.07.2010 No. 337-IV(the order of enforcement see Article 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 12. Features of the state regulation, control and
supervision of activity of security market entities

      Footnote. The title of Article 12 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      For the purposes of carrying out of the state regulation, control and supervision of activity of security market entities, the authorized body shall:
      1) recognize the assets of financial market as securities;
      2) carry out the state registration of issuance of the non-state equity securities, consider and approve the reports on results of issuance and placement of assets, placement and redemption of bonds and cancellation of issuance of securities and assign the national identification numbers to the state securities;
      3) determine conditions and procedure of issuance, placement, circulation and redemption of securities, as well as public securities, procedure of assignment national identification numbers to the state securities;
      4) establish conditions and procedure of the state registration of issuance of securities, as well as public securities, consideration of reports on results of their placement and redemption, as well as their cancellation;
      5)-7) (Is excluded - dated 19 February, 2007 No. 230)
      8) determine conditions and procedure of suspension and resumption of placement and circulation of securities and public securities;
      9) maintain the State register of securities, electronic register of the licensor and register of permissions for carrying out of activity on the security market;
      9-1) determine procedure of giving and refuse in giving the consent for acquisition of the status of major participant, managing the investment portfolio by the individual and legal entities, requirements to the documents, presented for obtainment of the specified consent, issue or refuse in issuance of such consent;
      9-2) establish the minimum amount of charter capital of professional participants of security market, procedure of its formation and composition;
      9-3) approve the prudential regulations and other standards and limits, compulsory for observation for professional participants of security market;
      10) establish conditions and procedure of carrying out of professional activity on the security market, as well as requirements to the condition and procedure of commission of transactions with securities;
      11) establish procedure of investment by the investment portfolio managers and institutional investors;
      11-1) establish procedure of maintaining of records of pension savings by the investment portfolio manager at the expense of voluntary pension contributions on the individual pension accounts of contributors (recipients);
      11-2) give permission for reorganization of voluntary pension savings fund;
      12) establish procedure of carrying out of activity or organizers of trades with securities and self-regulated organization;
      13) carry out control of manipulation of prices for the securities, as well as public securities, conclusion of transactions on the security market with the use of insider information or information, consisting official, commercial, banking or other legally protected secret;
      14) carry out regulation and control of functioning of investment funds in accordance with the legislation of the Republic of Kazakhstan;
      14-1) Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication);
      14-2) establish requirements on existence of system of risk management for professional participants on the security market;
      14-3) apply restricted measures and sanctions in relation of security market entities in the cases, established by the Laws of the Republic of Kazakhstan;
      15) carry out other functions in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 12 as amended by the Laws of the Republic of Kazakhstan dated 07.07.2004 No. 577; dated 20.02.2006 No. 127 (the order of enforcement see Article 2); dated 19.02.2007 No. 230 (the order of enforcement see Article 2); dated 15.07.2010 No. 337-IV (the order of enforcement see Article 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.06.2013 No. 106-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 13. Features of the state regulation, control and
supervision of activity of unified pension savings fund
and voluntary pension saving fund

      For the purposes of carrying out of the state regulation, control and supervision of activity of unified pension savings fund and voluntary pension savings fund, the authorized body shall:
      1) establish requirements to the leading employees of unified pension savings fund and voluntary pension savings fund;
      2) establish procedure of maintaining of records of pension savings at the expense of compulsory pension contributions, compulsory professional pension contributions on the individual pension accounts of contributors (recipients);
      3) establish procedure of transfer of voluntary pension savings of contributors to the unified pension savings fund in the case of termination of license for managing the investment portfolio with the right of attraction voluntary pension contributions;
      4) determine procedure of formation of the system of risk management and internal control;
      5) carry out other functions in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 13 is in the wording of the Law of the Republic of Kazakhstan dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 13-1. Features of procedure of organization and
conducting of verifications of financial organizations and
their affiliated persons, legal entities, carrying out activity
on the security market, issuers of securities, credit bureaus,
liquidation commissions of banks, insurance (reinsurance)
organizations, pension savings funds

      Footnote. Article 13-1 is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 14. Powers on obtaining information

      For the purposes of quality and timely execution of functions of the state regulation, control and supervision of financial market and financial organizations, imposed on the authorized body, implementation of requirements of this Law, the authorized body shall have a right to obtain information, necessary for carrying out of their supervisory functions free of charge from individuals and legal entities, upon that the obtained details are not subjected to disclosure.
      Employees of the authorized body shall bear responsibility for disclosure of details, obtained in the course of carrying out them of control and supervisory functions, consisting official, commercial, banking or other legally protected secret in accordance with the Laws of the Republic of Kazakhstan.
      Footnote. Article 14 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 15. Interaction of the authorized body with other state
bodies of the Republic of Kazakhstan and bodies of other
states, carrying out regulation and supervision of
financial markets and financial organizations

      1. An authorized body within the powers, provided to it by the legislative acts of the Republic of Kazakhstan, is independent in its activity. The state bodies shall not have a right to intervene into activity of the authorized body on implementation of its legislatively vested powers, except for the cases, provided by the legislative acts of the Republic of Kazakhstan.
      2. The authorized body shall coordinate its activity with other state bodies within the competence, provided by the legislation of the Republic of Kazakhstan.
      The authorized body shall provide information, received in accordance with international treaties of the Republic of Kazakhstan, other state bodies of the Republic of Kazakhstan only with the consent of the party, providing to it such information.
      3. Is excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      Footnote. Article 15 as amended by the Laws of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 3. Final provisions

Article 16. Responsibility of violation of the legislation of
the Republic of Kazakhstan on the state regulation, control and
supervision of financial market and financial organizations

      Violation of the legislation of the Republic of Kazakhstan on the state regulation, control and supervision of financial market and financial organizations shall entail responsibility, established by the Laws of the Republic of Kazakhstan.
      Footnote. Article 16 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 17. The order of enforcement of this Law

      This Law shall be enforced from 1 January, 2004.

      The President
      of the Republic of Kazakhstan